Payday loans are legal in Alabama but they are not regulated by the Small Loan Act. You can get a payday day loan in Montgomery, Phenix City, Birmingham, and in other cities. Regulations apply to both online and offline lenders.
Alabama state law allows providing payday loans in the amount not exceeding $500.
Such can be taken for a period ranging between 10 and 31 days with the maximum finance charge of 17.50% for every $100. APR is 456%. You can get one rollover and a cooling-off period of 1 day.
In order to provide payday loans in Alabama, lenders have to comply with the following regulations:
Alabama lenders are able to provide only one payday loan at a time.
If you do not repay a payday loan in due time or repay it not entirely, you will be charged a maximum fee of $30 for NSF.
Criminal actions against borrowers in this state are prohibited.
Alabama Payday Loan Regulations
| Legal Status | Legal |
| Maximum Loan Amount | $500 |
| Interest Rate (APR) | 456% |
| Maximum Loan Term | 31 days |
| Minimum Loan Term | 10 days |
| Finance Charges | 17.5% of the amount advanced |
| Number of Rollovers Allowed | 1 |